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Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate it cost $48,000. The object is to save on horse transporter rentals.

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Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate it cost $48,000. The object is to save on horse transporter rentals. Marsha had been renting a transporter every other week for $213 per day plus $1.65 per mile Most of the trips are 80 or 100 miles in total. Marsha usually gives Joe Laminitis, the driver, a $35 tip. With the new transporter she will only have to pay for diesel fuel and maintenance, at about $0.58 per mile insurance costs for Marsha's transporter are $1,850 per year: The transporter will probably be worth $28,000 (in real terms) after eight years, when Marsha's horse Spike wil be ready to retire. Assume a nominal discount rate of 10% and a 4% forecasted inflation rate. Marsha's transporter is a personal outlay, not a business or inancial investment, so taxes can be ignored: falculate the NPV of the investment. (Do not round intermediote calculations. Round your answer to the nearest whole doliar mount.)

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